Sunday, May 29, 2011

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short for the opening bell on Tuesday morning but stay tuned, this is high drama.  The algorithm wants to flip long but several proprietary rules have to be satisfied in addition to the algorithm number being above the signal line.  In a nutshell, if the SPX hits a 1335 handle, Keybot should flip to the bull side Tuesday.  This highlights how important the futures are on Monday night into the Tuesday session.  If futures are up, the market bulls will probably drive the SPX thru 1335 and up towards 1341, but, if the futures are red, the bears will try to maintain control, fighting off the bulls who are on the verge of turning the indexes back in their favor.

The utilities, retail and lower volatilty are helping bulls.  The semi's, financials, copper and commodities are helping bears.  Watch retail, volatility, copper and commodities most closely; RTH 109.76; VIX 17.58; JJC 55.43 and CRB 349.59 will tell the story.  If any of these sectors flip sides as per the numbers shown, the broad markets will be running the same way. For example, if RTH falls under 109.76, the broad market bears will win on Tuesday.  If copper, measured with JJC, gets above 55.43, then the bulls are truly running so get out of the way bears.

The new week sees two pre-scheduled number clicking off for Tuesday, one at 10 AM EST, so the markets plan on an exciting return after the holiday weekend.  Another pre-scheduled number will be clicked off by the algorithm on Friday morning. Stay tuned, markets are unstable, expect the unexpected.

6/5/11; 7:00 PM EST =
6/3/11; 9:00 AM EST =
5/31/11; 7:00 PM EST EOM =
5/31/11; 10:00 AM EST =
5/29/11; 7:00 PM EST = +2; signal line is +1 but algorithm says stay short
5/27/11; 10:00 AM EST = +2; signal line is +2
5/26/11; 12:12 PM EST = +2; signal line is +3
5/26/11; 9:51 AM EST = -14
5/25/11; 2:44 PM EST = +2; signal line is +4
5/25/11; 11:53 AM EST = -14
5/25/11; 11:40 AM EST = +2; signal line is +6
5/25/11; 10:25 AM EST = -14
5/25/11; 9:30 AM EST = -28
5/24/11; 3:52 PM EST = -12; signal line is +10
5/24/11; 3:00 PM EST = +2; signal line is +11
5/24/11; 11:47 AM EST = -12
5/24/11; 9:45 AM EST = +2; signal line is +14
5/23/11; 3:24 PM EST = -12
5/23/11; 2:36 PM EST = +2; signal line is +16
5/23/11; 9:31 AM EST = -12

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